State Street (STT) Reports 7c EPS Miss; UBS Cuts Price Target to $70

UBS reiterated a Neutral rating on State Street (NYSE: STT), and cut the price target to $70.00 (from $76.00), following the company's 3Q15 earnings report. STT reported operating EPS of $1.16, below consensus of $1.23 per share.

Analyst Brennan Hawken commented, "Given the difficult revenue environment, expenses have become a focal point for investors, but progress on this front remains slow. The recently completed expense reduction plan at STT targeted $625 million from the expense base yet expenses increased $1.2 billion over the three year window, as the cuts were overwhelmed by business investments and regulatory expense pressures. Management intends to accelerate the next leg of the plan, targeting cost reductions of $500 million. However, details around timing (maybe 4 -5 yrs) are limited, and so is the bottom line impact. So it seems we may not have these details until the investor day next February. Given the build up to this expense cut announcement (previewed on last quarter's earnings call) we view these limited incremental details as disappointing."

For an analyst ratings summary and ratings history on State Street click here. For more ratings news on State Street click here.

Shares of State Street closed at $67.14 yesterday.

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